What Is Limited Liability Partnership (LLP)?
The most popular form of business for entrepreneurs is the Limited Liability Partnership, which combines the qualities of a company and a partnership firm into a single entity. Limited liability partnership registration in Hyderabad is required to start a business under the LLP Act 2008. Regardless of the change in partners, It can continue to exist. It can sign contracts in its name. Furthermore, each partner is protected from other partners’ liabilities for wrongful business or misbehavior. The winding-up may be voluntary or carried out by management is associated under the Companies Act of 1956. The Indian Partnership Act of 1932 does not apply . The following are some of the characteristics
1.It is a separate legal entity, similar to a corporation.
2.There is no such thing as a minimum capital contribution.
3.There are fewer rules and regulations.
4.Each partner’s liability is limited to the amount contributed.
5.The establishment of an LLP is affordable.
6.It should have a minimum of two partners to be formed. There should be two individuals who are designated partners, one of whom must be an Indian.
7.The Act makes no mention of a maximum number of members.With its historic and antique rich culture, Hyderabad is both modern and developed, and it is rapidly expanding. It also includes HICC Hyderabad International Convention Center, Asia’s and one of the world’s largest convention centers, and one of India’s most technologically advanced convention centers.
LLP Registration by Experts
Reasons For Registration :
The reasons LLP registration in HYDERABAD are as follows:
- It is both a legal entity and a juristic person. A partner is not liable to an LLP’s creditors for the debts.
- It has a perpetual succession, which means it will continue to exist until legally dissolved.
- If it has an turnover of less than 40 lakh and a capital contribution of less than 25 lakh, it does not need to be audited. This is ideal for small businesses and start-ups with low regulatory compliance.
- By adding another individual as a partner, ownership may easily be transferred to them.
Need For Registration :
This is a new concept for medium and small businesses It has some of the same advantages as a Private Limited Company. The cost of forming is low, and it’s simple to keep one up to date. Its establishment method is nearly identical to that of a Private Limited Company. The LLP Registration is what gives the legal entity its personality. The company’s registrar is in charge of all this.
- Before starting the LLP procedure, you must first obtain a Digital Signature. All documents are filed online and require a Digital Signature. As a result, the certifying agency must provide them with a Digital Signature.
- For every designated partner of the proposed LLP, a Digital Identification Number (DIN) must be obtained. Previously, these partners had to apply for a DPIN (Designated Partner Identification Number), but now they must have a DIN. A scanned copy of the Aadhar Card is added to the form for this purpose. A Company Secretary, Chartered Accountant, or Advocate must sign the form.
- There is now a name reservation. The name is searched for via a search facility or on the Ministry of Corporate Affairs website. Inform-1 6 name preferences have to be written down. The registrar will only authorize the name if it is different from the other name and is not considered unacceptable by the central government.
- The application form for the formation of an LLP is Form 2. All of the data, such as the names of the authorized partners and each partner’s contributions, must be filled out correctly. Fees are paid through contributions from partners. A person who is a designated partner with DIN must digitally sign the form. It must also be signed by a Chartered Accountant, an Advocate, and others. The registration takes about 15-20 days.
- The designated partner’s joint rights and responsibilities are governed by the LLP agreement. This agreement is submitted on Form 3. Within 30 days of incorporation, Form 3 agreement must be completed. The contract must then be printed on Stamp Paper.
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Minimum Requirements :
The following are the requirements for creating an LLP :
- A minimum of two partners is required (they can be Body Corporate and an Individual).
- A minimum of two individual Designated Partners is required, one of which must be an Indian.
- A Digital Signature Certificate should be present.
- The name of the company must appear.
- The LLP agreement must be in place.
- A registered office is required.
- An LLP established outside of India can open an office in India, but it must adhere to all of the conditions of the LLP Act, 2008.
Documents Required :
The following is a list of the documents needed :
Documents of Partners:
-PAN Card/ID proof.
-Passport size Photography on white Background.
-Passport(In case of foreign nationals/NRIs).
Documents of LLP:
-Proof of Registered Office Address.
-Digital Signature Certificate.
The following are some of the advantages :
- An LLP is easier to manage than a company.
- In the formation of an LLP, there is no maximum number of members.
- The Dividend Distribution Tax does not apply to LLPs. (DDT). Similarly, the company must pay this tax.
- Professionals such as lawyers, accountants, and company secretaries prefer to form an LLP.
- Company funds can be purchased and sold by the Companies Act of 2013.
- When compared to a company, the cost of forming an LLP is lower.
- Partners are not liable for the actions of their fellow partners.